Brief Exercise 17-4 Hendricks Curpuraton purchased trading mestment bonds for50

Question

Brief Exercise 17-4 Hendricks Curpuraton purchased trading mestment bonds for50 UCO ut pdr. At Desemuer 31, Hendricks rece'veu annual merest of S2,0JU, arc the fr value uf te tunds wus $47,400. Prepare Hendricks's our al entries fo a the purchase of the m estr ert b thé interest received, and the fair value ad st nert Ass nre a zero balance in the Fair alue A ustment accoure manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts) No. Account Titles and Explanation Ca) d annuel interest of c it account titles re auto mati any indented rhe amount is d Do ot dent ente Click if you would like to Show Work for this question Shew Wonk

Explanation / Answer

Hendricks Journal entries No. Account Title & Explanation Debit Credit a Investment in Bonds $50,000 Cash $50,000 (to record purchase of trading investment bonds) b Cash $2,000 Interest Revenue $2,000 (to record interest received on bonds) c Fair Value adjustment account $2,600 Investment in bonds $2,600 (to record the trading investment in bond at fair value)

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.